http://useconomy.about.com/od/tradepolicy/p/us-china-trade.htmThe Real Reason We're Sending American Jobs to China
What Is the U.S. Trade Deficit with China?
The U.S. trade deficit with China was $365.7 billion in 2015 This is a new record, up slightly from last year's record of $343 billion.
The trade deficit exists because U.S. exports to China were only $116.2 billion while imports from China hit a new record of $481.9 billion. The deficit keeps growing because imports are rising faster than exports.
The United States imports consumer electronics, clothing and machinery from China. A lot of the imports are from U.S.-based companies that send raw materials to China for cheap assembly. When they are shipped back to the U.S., they are called imports even though they are profiting American-owned companies. (Source: U.S. Census, U.S. Trade in Goods With China)
China must continually buy so many U.S. Treasury notes that it is now the largest lender to the U.S. Government. As of December 2015, the U.S. debt to China was $1.246 trillion. That's 20% of the total public debt owned by foreign countries. Many are concerned that this gives China political leverage over U.S. fiscal policy, since it could call in its loan. (Source: U.S. Treasury, Major Foreign Holdings of Treasury Securities)
